Southern Pacific Resource Corp STPJF

Energy Oil & Gas E&P

Southern Pacific Resource Corp. is a Canada-based company, which is engaged in the thermal production of heavy oil in Senlac, Saskatchewan on a property known as STP-Senlac, and thermal production of bitumen on a property located in the Athabasca region of Alberta known as STP-McKay, as well as exploration for and development of in-situ oil sands in the Athabasca region of Alberta. Its STP-McKay property consists of oil sands leases totaling approximately 37,760 acres. The Company’s operations also include Anzac, Hangingstone and Ells. The Company’s STP-McKay property is located approximately 45 kilometers northwest Ft. McMurray. The Anzac project covers approximately 117 kilometers of two-dimensional (2D) seismic. The Company owns 80% interest in Hangingstone project. The Ells project covers approximately 164 kilometers of two-dimensional (2D) seismic.

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Southern Pacific Resource Corp > ICD history

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Comment by Eyeinvestoron Jul 23, 2014 5:36pm

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Post# 22775547

RE:RE:RE:RE:RE:RE:RE:ICD history

I don't know about that graph but the only wells shut in were 1p2 and 1p4 as at end May.
1p2 is quite an interesting well because this was the well that responded to HSS and briefly produced approx. 200 bb/d in and around August/ Sept but then had a mishap and got shut down in October. I cannot remember hearing an explanation but I suspect this was the same problem of uneven conformance. This is exactly what ICDs can prevent. Unless the well was destroyed, eye have been wondering whether IP2 is one of the few likely candidates on pad 1 for an ICD. If they can get 200 bb/d for a $1million capex, that is a very good ROCE. 1p2 again shows that the oil is there and that this is an engineering design flaw.

As you know I don't place a lot of import on pad 1 when trying to value STP. The key to STP is the output of wells without design flaws. BUT any extra cash flow out of Pad 1 is all cream on top. Interestingly Pad 1 increased production slightly in may over april. 1p5 (with ICDs )improved month over month and is creeping back up to flush levels immediately post the UCD installation. 1P3 ticks along at 100bbd. Everything else on pad 1 is barely producing enough to oil your lawnmower. For Pad One fans, Im guessing 1P2 might be a well to watch.

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